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I really love WMT. It is the king of retailers in my mind.
I agree their online site is great. I use it a lot and their prices are usually extremely good.
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Walmart warning today of EPS at the low end or below their guidance for Q4 and full year. Also negative comp sales for us walmart and sams stores. Could be a better entry point coming soon.
Some people say WMT is a gauge of the economy... so this is bad news overall.
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Sold half of my WMT position for basically a wash after dividends this morning. 2% DGR @ 2.5% yield does NOT cut it for me. If they don't pick up the pace again next year, I'm out completely.
They must be worse off than I thought, this is the smallest increase in a long time for them.
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Seriously considering selling tomorrow as well. I'm dead even after 11 months holding it. I bought it for the dividend growth and 2% isn't going to cut it with such a low yield. There are plenty of other options out there with higher yields and a clearer growth picture.
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Still on the fence but for now thinking I will put WMT on probation and hold. A quick read through release shows they are expanding capital outlays to increase small neighborhood store formats by about $600M, which I think is a good idea. That $600M is roughly what a 10% increase in the dividend would have cost the company.
I can also see the point of maintaining stock buybacks rather than increasing dividends at the expense of buybacks considering the current valuation. The company has a long history of decreasing the share count, which boosts EPS in the long. With shares trading at around a 14 PE I can understand why they would continue to buy shares.
Still not happy with the paltry 2% boost, but I feel a little better about it now after digging deeper.
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I do not own it and am not considering it
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03-08-2014, 04:05 PM
(This post was last modified: 03-08-2014, 04:05 PM by dividendventure.)
I believe Walmart is selling at a discount right now and is a really great company. They are in that sweet spot where everyone is disappointed with results that were positive nonetheless. My only beef with it is the dividend being so low, specially since this time around their dividend increase was very small. The dividend is the reason why I am not going for it unless I'm having a lot of trouble finding value elsewhere.
